The Norwegian Government Pension Fund Global agreed today to buy 50% of five properties in Paris from Generali Group for 275 million, or approximately 2.1 billion Norwegian kroner.
Norges Bank Investment Management (NBIM), the fund's manager, and Generali also agreed to form a joint venture where Generali Real Estate provides asset management services. The partnership will have a long-term investment strategy focused on central Paris and may over time be extended to other European markets.
"We are pleased to partner with an institution of Generali's caliber and hope to expand the relationship in the years ahead," says Karsten Kallevig, NBIM's chief investment officer for real estate. "The transaction will increase our exposure to high-quality properties in central Paris."
Generali will hold the remaining 50% of the properties on completion of the transaction, which is expected by year-end. The properties, used as office and retail premises, have a total surface area of about 38,600 m² and are located in:
100 avenue des Champs Elysées, Paris 8e
3-5 boulevard Malesherbes, Paris 8e
15-17 rue Scribe, Paris 9e
11/13/15 rue Pasquier, Paris 8e
183-185 avenue Daumesnil, Paris 12e
Norges Bank Investment Management (NBIM) safeguards and builds financial wealth for future generations as the manager of the Norwegian Government Pension Fund Global. The fund is invested globally in equity, fixed-income and real estate markets. It held assets worth about US $550 billion at the end of 2011.
Generali Real Estate is a leading European property manager and services provider for institutional clients. Established in 2011 as the sole manager of the Generali Group's property assets, Generali Real Estate also intends to develop services for third-party institutional investors.
With an asset portfolio worth approximately 28 billion, Generali Real Estate is present in ten markets (Italy, France, Germany, Austria, Spain, Belgium, Netherlands, Switzerland, East Europe and Asia) with operating units located in the nerve centers of each market, and a team of more than 500 professionals with international and wide experience on their respective local markets.